In May 2022, Netflix announced the controversial decision that it would be rolling out ads on its platform in the next year or two. The company has been shopping around for a partner to help provide this subscription tier, and now it’s found one.
Thankfully, these commercials won’t be imposed on all subscribers. The streaming service plans to offer an ad-supported subscription tier. We still don’t know what that price will be.
This is a bit concerning for some people as the streaming giant is known best for its ad-free viewing. And while the it will be a separate subscription plan, there’s a big chance Netflix will raise its prices for its other tiers, while then providing the “cheaper” plan. This wasn’t confirmed by the company, but it’s just one concern some of us have thought of.
On the other hand, this might help the streamer as it continues to lose subscribers. A report released in May showed that Netflix lost 200,000 subscribers in Quarter 1 of the fiscal year. So a more affordable plan, even with ads, might attract viewers back.
Why is Netflix working with Microsoft for its ad-supported subscription tier?
Netflix has chosen to partner with Microsoft to handle the new ad-supported tier. In a press release, Netflix Chief Operating Officer Greg Peters said Microsoft has proven the ability to support the company’s advertising needs as they build the ad-supported offering.
He continued:
Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.
Protecting the privacy of users is one major consideration for viewers and will probably attract more back. In the digital age, we’re used to companies using our information to bombard us with targeted ads. But since Netflix’s announcement to change course, the company has stated advertisers will not be able to track users’ information. And I think this is a very smart choice on their end!
What do you think about the ad-supported tier? Do you agree with Netflix’s decision? Let us know your thoughts in the comments!
